Outback Steakhouse, Inc. and Affiliates
Consolidated Statements of Income



(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                                                  Years Ended December 31,
                                                              2000        1999        1998    
REVENUES
    Restaurant sales                                       $1,888,322  $1,632,720  $1,392,587
    Other revenues                                             17,684      13,293      10,024 
TOTAL REVENUES                                              1,906,006   1,646,013   1,402,611 
COSTS AND EXPENSES
    Cost of sales                                             715,224     620,249     543,770
    Labor and other related                                   450,879     387,006     327,261
    Other operating                                           358,514     299,829     259,757
    Depreciation and amortization                              58,109      50,709      40,771
    General and administrative                                 75,410      61,173      51,859
    Provision for impaired assets and restaurant closings                   5,493
    Income from operations of unconsolidated affiliates        (2,457)     (1,089)       (514)
                                                            1,655,679   1,423,370   1,222,904 
INCOME FROM OPERATIONS                                        250,327     222,643     179,707
OTHER INCOME (EXPENSE), NET                                    (2,058)     (3,042)     (1,870)
INTEREST INCOME (EXPENSE)                                       4,617       1,416      (1,357)
INCOME BEFORE ELIMINATION OF MINORITY PARTNERS' INTEREST
    AND PROVISION FOR INCOME TAXES                            252,886     221,017     176,480
ELIMINATION OF MINORITY PARTNERS' INTEREST                     33,884      29,770      21,914 
INCOME BEFORE PROVISION FOR INCOME TAXES                      219,002     191,247     154,566
PROVISION FOR INCOME TAXES                                     77,872      66,924      53,638 
INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE 
    IN ACCOUNTING PRINCIPLE                                   141,130     124,323     100,928
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
    (NET OF INCOME TAXES)                                                              (4,880)
NET INCOME                                                 $  141,130  $  124,323  $   96,048 

BASIC EARNINGS PER SHARE
    Income before cumulative effect of a change 
      in accounting principle                              $     1.82  $     1.61  $     1.33
    Cumulative effect of change in accounting 
      principle (net of income taxes)                                                   (0.06)
    Net income                                             $     1.82  $     1.61  $     1.27 
    Basic weighted average number of common 
      shares outstanding                                       77,470      77,089      75,702 
DILUTED EARNINGS PER COMMON SHARE
    Income before cumulative effect of a change 
      in accounting principle                              $     1.78  $     1.57  $     1.30
    Cumulative effect of change in accounting 
      principle (net of income taxes)                                                   (0.06)
    Net income                                             $     1.78  $     1.57  $     1.24 
    Diluted weighted average number of common 
      shares outstanding                                       79,232      79,197      77,484 

PRO FORMA (unaudited) (See Notes 8 and 17):
PRO FORMA PROVISION FOR INCOME TAXES                                   $   68,849  $   55,003 
PRO FORMA INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE
    IN ACCOUNTING PRINCIPLE                                               122,398      99,563
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
    (NET OF INCOME TAXES)                                                              (4,880)
PRO FORMA NET INCOME                                                   $  122,398  $   94,683 

PRO FORMA BASIC EARNINGS PER SHARE
    Pro forma income before cumulative effect of a change
      in accounting principle                                          $     1.59  $     1.31
    Cumulative effect of change 
      in accounting principle (net of income taxes)                                     (0.06)
    Pro forma net income                                               $     1.59  $     1.25 
PRO FORMA DILUTED EARNINGS PER COMMON SHARE
    Pro forma income before cumulative effect of a change
      in accounting principle                                          $     1.55  $     1.28
    Cumulative effect of change 
      in accounting principle (net of income taxes)                                     (0.06)
    Pro forma net income                                               $     1.55  $     1.22 
The accompanying notes are an integral part of these Consolidated Financial Statements.